6 Ways Working Remotely Will Save You $4,600 Annually, or More

It's often thought that working remotely will save you money, but how much? We break down the cost savings of telecommuting for you. Save

There’s been a lot of discussion in the flexible job market about how working remotely will save you money. But how, specifically? A couple of years have passed since we last explored in detail how not working in an office environment can amount to real savings. Here, we’re updating our research with the latest figures.

Spoiler alert: The average person can save at least $4,668 per year by working remotely.

Where do the savings happen? Check out the six ways described below to find out how working from home will save you money.

1. Gas: $686 saved per year

How we reached this number: The average worker spent about 52 minutes commuting to and from work in 2015, roughly 30 miles each way, according to federal data. Nationwide, the average cost of gas is about $2.20 per gallon as of this report, according to AAA figures.

Assuming you average about 25 mpg, you can save $686 a year on gas by not commuting to work.

2. Car Maintenance: $767 saved per year

How we reached this number: An estimate by AAA put the average annual cost of car upkeep at about $767 per year, based on routine factory-recommended maintenance and repairs.

3. Dry Cleaning & Laundering: $500 to $1,500 saved per year

How we reached this number: While dry cleaning costs can vary by region (and including variables like the higher cost to clean women’s shirts compared to men’s), the average household spends about $500 per year on dry cleaning, according to one source. But another says that women spend on average $1,500 per year.

4. Lunches & Coffee: $1,040 saved per year

How we reached this number: You may already be painfully well aware that eating out for lunch and buying coffee frequently can add add up fast. This is a discretionary cost that can amount to hundreds of dollars over the course of a year.

Say you have a relatively cheap lunch out twice a week, paying $7 each time, and you purchase a $3 cup of coffee twice a week. That would be $20 a week, or $1,040 a year—not an insignificant figure.

5. Professional Wardrobe: $925 saved per year

How we reached this number: Bureau of Labor Statistics research on consumer spending patterns shows the average amount spent on apparel in 2015 was about about $1,850. Let’s assume the average professional worker spent about half that amount on clothing for work. That amounts to $925 per year.

6. Tax Breaks: $750 saved per year

How we reached this number: If you work from home, you can deduct your home office, taking advantage of recently streamlined IRS options that apply to home-based workers.

If your home office deduction is $3,000, you can lower your tax obligation by $750.

TOTAL:

In total, these savings add up to at least $4,668 a year when you’re a full-time telecommuter at the low end of the dry cleaning estimate, and $5,668 if you’re at the high end.

A Bonus Way That Working Remotely Will Save You Money

Vacation Time & “Real” Salary: An additional $4,867 saved

How we reached this number: Have you ever tried to place a value on the amount of time not spent commuting, and what that means for your financial bottom line? Let us explain. To begin with, consider time spent commuting as part of your total workday. After all, the entire purpose of slogging to and from the office is to do your job.

Given that the average commute time is 52 minutes (see above), that’s nearly another hour every day devoted to a work-related activity, namely, commuting. However, by working from home, the average former commuter will be spending 225 fewer hours on a work-related activity, or about 28 fewer eight-hour days every year.

How does that translate when it comes to your salary? Say you earn $50,000 a year and you’re commuting to an office. That would mean your making about $21.70 per hour (because you’re working an eight-hour day plus your 52-minute commute, or just under nine hours daily).

Compare that with making $24.04 an hour for an eight-hour day when you’re telecommuting and really working eight hours. Add that up throughout the year, and it’s like you’re making $4,867 more annually by telecommuting.